Hey everyone, thanks for the advice on things so far! I am just about done with my rehab. I purchased it for 36k, and after closing costs and all rehab costs I am sitting around 53K. The house is pretty much ready to sell, with this weekend getting the final touches. I am selling it on my own with the help of my aunt who is a realtor. She thinks I should sell it for 69,900. Much smaller houses on either side of me just sold last week and they aren’t updated and have one less bathroom. They each sold for 60k. I need to sell fast as I am running out of funds for the house payments, thats another story. I guess my main question is how long does it usually take to get your houses sold, and what are the best strategies for getting people to take note of the home. Thanks.
Well it sounds like you are trying to sell this particular property at 100% LTV or more. That will be challenging because no investors will be interested in this property so you will have to market this to Renters and people shopping for a home. * Investors usually look for rental properties that are at 70% LTV or better.
One approach you may be interested in taking is to sell this property in a rent-to-own situation. But that will depend on whether you can create enough cashflow based on the fair market rent values in this particular area to 1. pay the mortgage monthly and 2. generate positive cashflow.
Ask your aunt for the DOM (Days On Market) of the houses that she is using as comps.
65 is the average days on the market for the area. The area is mostly homeowners with few renters at all. Today two people stopped by with one being very impressed and giving me her phone number and name and stated she wanted to come back by tomm for a second look with her husband. They are already approved for a loan as of a couple of days ago, so keep your fingers crossed for me, I need to sell due to a situation that came up. Thanks
In general houses don’t sell for more than the comps and faster than the average days on the market. You can’t plan on getting more that the market is selling for or faster than the market is moving. You get in trouble faster than anything else when you think you can sell for more than the comps or faster than the market.
Then comps you are using “Much smaller houses on either side of me just sold last week and they aren’t updated and have one less bathroom. They each sold for 60k.” are the wrong comps. You need to comp the same size house same number of bathrooms in the same neighborhood.
Thats just the thing, there are NO comps on the whole neighborhood. Every house is the same. 3 bedrooms, one bathroom, 1092sq ft, no basement. There are 5 streets in the neighborhood with the exact same houses. There are some that have recently sold for 66 and 67k respectively in the neighborhood. I was just using the two beside me as a recent example.
Sounds like you really need to pony up and get an appraisal on your house. Because if you do not have any comps within a miles area you may be in for some rough sailing. I just went through that with a property no comps within a miles radius so any potential buyer had a hard time getting financing because the lender did not see the purchase price as justified.
If I were you I would get a reliable appraiser who will give you an accurate appraisal and not a stretched one. That game is not working anymore.